The cost of production summary for Maha Industries follows:
Maha Industries
Cost of Production Summary
For the Month Ended May 31, 20--
Cost of production for month:
Materials $ 8,000
Labor 4,000
Factory overhead 3,000
Total costs to be accounted for $15,000
Unit output for month:
Finished and transferred to Finished goods
during month 3,500
Equivalent units of work in process, end of
month (2,000 units, 25% completed) 500
Total equivalent production 4,000
Unit cost for month:
Materials ($8,000 / 4,000) $2.00
Labor ($4,000 / 4,000) 1.00
Factory overhead ($3,000 / 4,000) .75
Total $3.75
Inventory costs:
Cost of goods finished and transferred to
Finished goods during month: (3,500 ´ $3.75) $13,125
Cost of work in process, end of month:
Materials (2,000 ´ .25 ´ $2.00) $1,000
Labor (2,000 ´ .25 ´ $1.00) 500
Factory overhead (1,000 ´ .25 ´ $.75) 375 1,875
Total production costs accounted for $15,000
What is the journal entry to record factory overhead applied to production?